Monthly Archives: October 2017

The extended record-setting move up in the venerable S&P 500 is making any self-respecting seller “wanna holler and throw up both my hands,” and many of the weaker shorts are capitulating. This has my contrarian senses tingling.

Let’s have a look at what’s going on in three important markets, stocks, interest rates, and the US dollar.

It’s been said that trading is like flying an airplane, “Hours of boredom with moments of terror.” Market action may sometimes feel frenetic, but Options Hotline subscribers use a strategic game plan for each trade to smooth turbulence and steadily stay a step ahead of the crowd.

In mid-September I noticed the unhealthy eatery’s shares were not as sickly as they appeared. The signs of a potentially vigorous and natural rebound were flashing and, from the menu of available options, I recommended a January $40-strike call for our readers.

Corporate earnings beats, particularly in the Dow industrials, are propelling panic buying. Central bank monetary largesse and money moving out of bonds (pushing 10-year yields up), along with investor hopes for tax cut legislation is also juicing the market.

I try to tune out the noise and focus on what the character of the behavior of market price movement is saying. Note, in my daily candlestick chart below, the appearance of a “hanging man” followed by a strong negative black candle just as the venerable index is nearing the apex of a bearish rising wedge pattern. This is telling us that buyers are approaching exhaustion and sellers are poised to strike back.

Markets don’t move down a one-way street. The news of record-setting stock prices Mr. Trump is so fond of touting hasn’t been booked by this Internet darling. As you can see by my daily candlestick chart of TripAdvisor shares, the online travel brand company settled today’s session pointing south.